Edison Landscaping installs artificial turf in residential yards. The company's most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $145,000 100% Variable expenses 58,000 40% Contribution margin 87,000 60% Fixed expenses 25,000 Net operating income 62,000 1.Compute the company's degree of operating leverage. 2.Using the degree of operating leverage, estimate the impact on net operating income of a 12% increase in sales.
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Compute the company's degree of operating leverage
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- Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format Income statement follows: Percent of Sales Amount Sales 100% $ 127,000 50,800 48% Variable expenses Contribution margin 76,200 60% Fixed expenses 19,000 Net operating income $ 57,200 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating Income of a 27% Increase in unit sales. 3. Construct a new contribution format Income statement for the company assuming a 27% Increase in unit sales. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 27% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales Sales ✔S 34,290 X 13,716 Variable expenses Contribution margin 20,574 Fixed expenses 19,000 Net…Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 94,000 100% Variable expenses 37,600 40 Contribution margin 56,400 60% Fixed expenses 43,240 Net operating income $ 13,160 Required: 1. What is the company’s degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% increase in unit sales.Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 134,000 53,600 100% Variable expenses 40% Contribution margin 80, 400 60% Fixed expenses 15, 000 $65,400 Net operating income Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leveráge, estimate the impact on net operating income of a 12% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in sales. ces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage
- Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% 60% Sales Variable expenses Contribution margin Amount $ 86,000 34,400 51,600 Fixed expenses 41,280 Net operating income $ 10,320 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places) Degree of operating leverage 4.29 Required 2Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 134,000 100 % Variable expenses 53,600 40 % Contribution margin 80,400 60 % Fixed expenses 15,000 Net operating income $ 65,400 Required: 1. What is the company’s degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 14% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 14% increase in sales.Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 145,000 100 % Variable expenses 58,000 40 % Contribution margin 87,000 60 % Fixed expenses 22,000 Net operating income $ 65,000 Required: 1. What is the company’s degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 23% increase in sales. PART 1: What is the company’s degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage PART 2 Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. (Do not round intermediate calculations. Round your percentage…
- Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% Amount Sales $ 80,000 Variable expenses 32,000 40% Contribution margin 48,000 60% Fixed expenses 38,000 Net operating income $ 10,000 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 1 decimal place.) Degree of operating leverage 4.8Provide AnswerEngberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 84,000 100% Variable expenses 33,600 40% Contribution margin 50,400 60% Fixed expenses 40,320 Net operating income $ 10,080 Required: 1. What is the company’s degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of an 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming an 8% increase in unit sales. Required 1 Degree of operating leverage Required 2 & 3:see doc attached
- Given answer accounting questionsSubject : - AccountingEngberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales Variable expenses $ 96,000 100% 38,400 40% Contribution margin 57,600 60% Fixed expenses 44,160 Net operating income. $ 13,440 Required: Assessment Tool iFrame 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales.